Arbeitspapier

A model of solar radiation management liability

Solar Radiation Management (SRM) is a set of potential technologies to counteract climate change. Liability regimes are one potential form of governance institution to avoid global externalities caused by the SRM "free-driver" problem. In this paper I examine the incentives structure and welfare consequences of SRM liability regimes. Characteristics specific to SRM impact on the incentives that liability regimes provide via the definition of harm and the liability standard. Consequently, a liability regime is defined as a combination of a definition of harm and a liability standard in the model. Providing several interpretations of these two dimensions adequate for the SRM context, I show that only one combination implements the social optimum. A numerical implementation of the model yields that the free-driver problem is moderate given a metric of mean temperature and extreme given a metric of mean precipitation. Furthermore, the implementation suggests that liability regimes are generally capable of mitigating the free-driver problem substantially and that the choice of the definition of harm is more consequential than the choice of the liability standard.

Language: Englisch

Bibliographic citation: Series: Discussion Paper Series ; No. 644

Classification: Wirtschaft
Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
Climate; Natural Disasters and Their Management; Global Warming
Tort Law and Product Liability; Forensic Economics

Subject: Solar Radiation Management
Liability Regimes
Externalities
Climate Engineering
Free-Driver Scenario

Event: Geistige Schöpfung

(who): Pfrommer, Tobias

Event: Veröffentlichung

(who): University of Heidelberg, Department of Economics

(where): Heidelberg

(when): 2018

DOI: doi:10.11588/heidok.00023978

Handle: http://hdl.handle.net/10419/179273

URN: urn:nbn:de:bsz:16-heidok-239787

Last update: 10.03.2025, 11:42 AM CET

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Object type

Arbeitspapier

Associated

Pfrommer, Tobias
University of Heidelberg, Department of Economics

Time of origin

2018

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